China's Depositors Face Rate Shock as 3% Deposits Mature in 2026, Yields Drop to Single Digits

In 2026, a wave of medium and long-term deposits locked in at rates above 3% will mature, forcing depositors to confront sharply lower yields. Most Chinese banks have cut deposit rates across all tenors into the single-digit range, with large certificate of deposit quotas tightening and longer-maturity products being phased out. Depositors are shifting allocation strategies away from simple high-yield savings accounts toward balancing safety, returns, and liquidity, while banks face pressure to accelerate wealth management business transformation, according to China Securities Journal.
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